PROVIDENCE – More than $370 million in forgivable payroll loans has been approved for Rhode Island applicants as of Jan. 31 under the latest iteration of the Paycheck Protection Program, according to an update published on Tuesday from the U.S. Small Business Administration.
The $370.3 million doled out across 4,220 loans to state businesses, nonprofits and other eligible entities such as chambers of commerce represents roughly .5% of the $72.7 billion approved nationally since the program relaunched in January.
Including loans approved in 2020, the program has provided hard-hit businesses with $595.5 billion across 6 million loans intended primarily for payroll expenses, though the latest version expands the options for how recipients can spend a certain percentage of the money while still meeting forgiveness requirements.
A majority, $68 billion, of loans approved this go-round are for borrowers seeking more funding after receiving a loan in 2020, according to the SBA. The latest funding totals also include $3.4 billion doled out through community financial institutions, which were allowed to begin accepting applications a week before traditional financial institutions as part of efforts to reach underserved, minority businesses.
The report did not provide a state-by-state breakdown of loans by industry or demographics. But national data in the report shows that self-identified, white-owned businesses received the most money – $7.8 billion across 109,000 loans – but most recipients did not identify their race; $60.6 billion across 700,000 loans went to businesses that did not answer demographic questions.
The average loan size in the 2021 program was $82,000, with just over two-thirds of loans under $50,000 and nearly 80% of awarded funds going to businesses with 10 or fewer employees.
Accommodation and food-service industry recipients claimed 18% of funds awarded, with $13 billion across 95,000 loans, although the highest number of loans – 127,800 – went to those in the agricultural, forestry, fishing and hunting industries. Changes to the program allow qualifying restaurants and food service businesses to receive funds equal to 3.5 times their payroll – rather than the 2.5 times for other applicants.
Rhode Island-based Citizens Bank ranked sixth on the list of top lenders, with $1.1 billion distributed across 18,600 loans. Bank of America was the most prolific lender, distributing $1.9 billion across 35,600 approved loans.
Just over $211 billion of the $284 billion allocation approved in the December stimulus bill remains available, with a March 31 application deadline.
